What is Financial Fair Play and how have we recovered 1:1

What is financial Fair Play?

Financial Fair Play is a set of rules that each body (LaLiga, UEFA, RFEF...) applies to ensure that clubs are economically viable. In the case of Barça, the LaLiga and UEFA rules are the most important because they can affect participation in competitions and the registration of players.

What is the 1:1 rule?

The “1:1 rule” states that Barça can only spend on sports salaries as much as their income and accounts allow. LaLiga calculates a limit (LCPD) taking into account the club's expected income and remaining expenses, such as non-sports salaries or management expenses. This limit is compared to already committed salaries (CPD). If the limit is higher, the club can sign and renew players. Otherwise, no new additions can be registered.

How was the situation 3 years ago?

In 2021, when the current Board of Directors began, LaLiga only allowed Barça to spend 98 million euros on the workforce. This put the club in a very difficult situation, as it limited signings and renewals.

During seasons in which it has not been possible to dispose of the balance (rule 1.1), the LaLiga regulations themselves allow an alternative case for registering players. This rule depends on the season and has sometimes been 1:4, sometimes 1:3. Which means that for every 3 euros saved in sports salaries you could register one.

What are the main challenges?

Barça must meet three main objectives to remain in financial fair play:

• Generate more income than expenses each year.
• Maintain a positive net worth (have more assets than debts)
• Avoid excessive indebtedness in relation to income.